Esforin’s Algorithmic Energy Trading Solution Gains Investment from SEB Greentech VC for Carbon Reduction Efforts

Esforin’s Algorithmic Energy Trading Solution Gains Investment from SEB Greentech VC for Carbon Reduction Efforts

(IN BRIEF) SEB Greentech Venture Capital has acquired a stake in Esforin, a German company specializing in algorithm-based energy trading solutions. Esforin’s innovative approach optimizes supply and demand in the energy market by allowing customers to inject energy back into the grid during periods of low demand. This flexibility helps integrate more renewable energy into the grid and reduce carbon dioxide emissions. Esforin currently manages 1.5 gigawatts of controllable power and has shown significant growth. SEB Greentech VC focuses on investing in transformative green technology ventures, and Esforin is one of seven companies in which it has invested.

(PRESS RELEASE) STOCKHOLM, 26-May-2023 — /EuropaWire/ — Skandinaviska Enskilda Banken AB (STO: SEB-A) (SEB), a Swedish financial group leader on the Nordic market, announces that its risk capital investment unit, SEB Greentech Venture Capital, has acquired a partial ownership stake in Esforin, a German company specializing in algorithm-based trading solutions that enhance flexibility in the energy market and contribute to reducing carbon dioxide emissions by integrating more renewable energy into the grid.

“We view energy flexibility as the key enabler to a green energy transition. It is an increasingly complex market that is also growing very quickly, which places demands on fully automated trading and control. We are very impressed by what Esforin has accomplished and how much value they bring to clients, says Markus Hökfelt, head of SEB Greentech Venture Capital.

Optimizing Energy Supply and Demand Esforin, also known as Energy Services for Industry, offers infrastructure for trading on the flexibility market, with a focus on optimizing supply and demand. The company enables electricity customers to inject energy back into the grid during periods of low demand and consume it when supply is high. Esforin serves a range of clients, including energy-intensive industrial companies, municipal energy providers, renewable energy producers, and battery storage operators.

What sets Esforin apart is its unique solution for trading on the intraday market, where energy is traded in intervals of 5 to 15 minutes. Through fully automated trading and control of energy loads, battery storage, and production units, Esforin provides real-time optimization capabilities.

The flexibility to adjust energy consumption allows for the integration of more renewable energy sources into the grid, resulting in a reduction in carbon dioxide emissions. Currently managing 1.5 gigawatts of controllable power (equivalent to approximately the capacity of Ringhals power plant), Esforin has experienced significant growth, doubling its operations on an annual basis. According to TÜV Rheinland, a consulting company, Esforin’s flexibility trading contributed to a carbon dioxide emissions reduction of approximately 363,000 tons in 2022.

“Flexibility is the missing link within the energy transition puzzle. Our service ensures grid stability, lowers energy costs and increases the use of renewables. Furthermore, our customers benefit from a lower carbon footprint, says Christian Hövelhaus, CEO and founder of Esforin.

He believes that flexibility does not get the attention it deserves, neither in business nor in politics.

“Thanks to our new partner SEB, we have the financial means to expand our flexibility services even faster in Europe, he says.

Expanding Operations and Green Impact Esforin operates in Germany, the Netherlands, Austria, and the UK and has recently expanded into France and Belgium. With around 40 employees, the company is poised for further growth and innovation.

SEB Greentech Venture Capital focuses on investing risk capital in green technology ventures that have the potential to make a substantial impact on reducing greenhouse gas emissions or safeguarding planetary boundaries. With a 600 million Swedish kronor investment mandate, the unit has already invested in seven companies, including Esforin.

Read more about SEB Greentech Venture Capital

Read press release (esforin.com)

Media contact:
press hotline: +4687639110 or e-mail: press@seb.se

SOURCE:  Skandinaviska Enskilda Banken AB